EDSR MEMORANDUM 10-09-1995 ELK RIVER ECONOMIC DEVELOPMENT AUTHORITY
MEMORANDUM
TO: Economic Development Authority
FROM: William Rubin, Executive Directo/(
DATE: October 9, 1995
SUBJECT: Agenda Memo for October 9, 1995,
EDA Meeting
6. October Financial Update
Please refer to the financial summary prepared by Assistant City
Administrator Lori Johnson.
Action Requested
The October financial update is an informational item only and no
• action is requested.
8. Amendment to Elk River Motel Properties Note
At its September meeting, EDA Commissioners considered a request
from Elk River Motel Properties to extend its EDA loan. Authorized in
1990, the EDA loan to Elk River Motel Properties(i.e. AmericInn) had
an original principal balance of$32,500. It was structured as a ten
year amortization period and contained an interest rate of 7 percent.
A further provision called for a balloon payment on October 1, 1995.
The partners of Americlnn desired to extend this loan and their
request was more thoroughly outlined in a letter dated September 6,
1995. The EDA approved an extension for a period not to exceed two
years; the extension also called for an increase in the interest rate to
the current prime rate (8.75 percent). The Executive Director was
authorized to negotiate the specifics of the extension.
Included in the agenda packet is an amendment to the original EDA
Note with Elk River Motel Properties. The loan has been extended for
eighteen months and carries the current interest rate referenced
above. In addition to the amendment, it is appropriate to require a
P.O. Box 490 • 13065 Orono Parkway • Elk River, MN 55330-1743 • (612) 441-7420 • Fax: (612) 441-7425
Equal Opportunity Housing and Equal Opportunity Employment
EDA Agenda Memo Page 2
October 9, 1995
new consent resolution from the Americlnn partners. This resolution
• authorizes one of the partners to sign the amendment on behalf of Elk
River Motel Properties. In addition, it is appropriate to obtain
individual consents from the respective guarantors regarding the
extension of the Note.
Action Requested
The EDA is asked to authorize its president and its executive director
to execute the amendment to the EDA Note with Elk River Motel
Properties, Inc.
9. ECM Publishers Redevelopment Proposal
At its meeting on September 25, the Elk River City Council reviewed a
draft of a letter addressed to the president of ECM Publishers,Inc.
Following the City Council review, the letter was submitted to ECM
and copies were distributed to the EDA and the HRA Commissioners.
The letter outlined a variety of financial programs and incentive
programs available to ECM Publishers in the event it decides to
proceed with its acquisition and renovation of the former County
Administration Building in downtown Elk River. Although certain
EDA loans would apply to the acquisition and renovation component of
this building, an opportunity exists for the HRA to create a TIF
renewal and renovation district in the northwest corner of King
Avenue and Main Street. Long term, ECM Publishers would likely
construct a stand alone office facility comprised of approximately
15,000 square feet.
It is understood that ECM Publishers continues to meet with its
architectural firm in hopes of refining some of the details and some of
the specific dollar amounts related to the renovation component of the
County Administration Building. A decision to move forward with this
project will likely be made by ECM Publishers in the very near future.
Should that decision be made, EDA Commissioners,HRA
Commissioners, and the City Council can reasonably expect certain
requests from ECM Publishers.
10. EDA Committee Appointments/Reappointments
At its annual meeting in January, EDA Commissioners reviewed the
roster of existing committees. The committees include finance,
marketing,and R&D. Although all members of the respective
committees were reappointed, it was suggested that the city advertise
for members to these committees prior to 1996. It is probably more
EDA Agenda Memo Page 3
October 9, 1995
appropriate for the EDA to solicit applicants to these respective
• committees as the committee members directly serve the EDA. If the
EDA Commissioners are interested in pursuing a formal appointment
or reappointment process, it is appropriate for that process to begin
reasonably soon.
Action Requested
The EDA is asked to consider a process by which it would seek
appointments/reappointments to its Finance Committee, Marketing
Committee, and R & D Committee.
eda/meetings:agmm
•